The Builders Merchants Federation (BMF) has welcomed Chancellor Rishi Sunak’s announcement of an extension to the furlough scheme, which it says will provide the building materials sector and construction in general with a more flexible programme for a structured return to work as site activity ramps up.
The BMF has been actively pressing for a more flexible programme from the Government as a member of the Construction Leadership Council, which is co-ordinating the industry’s response to the Covid-19 crisis.
John Newcomb, BMF CEO said: “A survey of our members last week found almost 90% in favour of the job retention scheme continuing beyond the end of June, with a large majority (70%) favouring the phased withdrawal the Chancellor now plans.
“However, we would want to see flexibility in the way employees can be brought back into the workforce, with an element of part-time working allowed as part of the scheme and continued shielding permitted for vulnerable employees and those with caring responsibilities.
“As the industry returns it is critical that safety has the highest priority. Our new branch operating guidelines are helping more and more merchants to trade safely and support builders and contractors as they return to site.”
New statistics published on the day of the extension announcement (12th May) revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.
The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.
The government reports that it will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.
Chancellor Rishi Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way. This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”
The government has also published new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis. This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.
Click here for more information on the Coronavirus Job Retention Scheme and other government support initiatives.
For more information from the BMF, click here to visit its Coronavirus Information Hub.
